Minimum Wage — Payroll Definition

Minimum Wage paystub meaning: The lowest hourly rate an employer can legally pay — $7.25 federal, but higher in most states.

The lowest hourly rate an employer can legally pay — $7.25 federal, but higher in most states.

The federal minimum wage is $7.25/hour (unchanged since 2009). However, 30+ states and many cities set higher minimums. Notable 2026 minimums: California $16.90, New York $17.00 (NYC, Long Island & Westchester; $16.00 upstate), Washington $17.13, Massachusetts $15.00. Tipped employees have a federal minimum of $2.13/hour, with tips expected to bring total compensation to at least $7.25. If they don't, the employer must make up the difference. Always check your local minimum — it's often higher than the state rate.

Payroll and labor-law terms can vary by jurisdiction and by the facts of a particular job. This definition is an orientation, not legal advice; current federal, state, local, union, and employer rules may all matter.

When this term appears on a statement, read its label, current amount, year-to-date amount, pay-period context, and any adjacent rate or hours together. Resolve a mismatch with the original issuer or the cited authority rather than changing a record to force a preferred result.